AK&M 02 November 2024 15:40
Canadian broadcaster Corus Entertainment Inc. has engaged Jefferies Financial Group to evaluate a proposed deal to sell the business. This is reported in the Corus press release.
In July 2024, the management of Corus warned investors about debt problems that could lead to the inability of the company to continue its activities. The company’s debt exceeds 1 billion Canadian dollars, including bonds worth 500 million Canadian dollars maturing in 2028 and 250 million Canadian dollars maturing in 2030.
At the end of October, Corus announced a reduction in the volume of the credit line to 150 million Canadian dollars ($108 million) from 300 million Canadian dollars in exchange for more lenient terms from creditors. The company has entered into a deal with a consortium of banks led by RBC Capital Markets and TD Securities to amend the terms of the main credit line with the ability to request advances of up to 65 million Canadian dollars.
In 2024, Corus shares lost more than 80% of their value amid the difficult situation in the advertising market and the company’s debt burden. At the same time, the market capitalization of Corus fell to 23 million Canadian dollars from 1 billion Canadian dollars.
In September 2024, Quebecor Inc. sent an offer to Corus to buy out the business.
Corus is a Canadian international media and entertainment conglomerate headquartered in Toronto, Canada. The company owns large holdings in the radio, publishing and television industries in Canada.
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